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-- Blake credit rating could prove to be a costly move for generations to come with me now is that Donald.
With the details and I know -- you've been working -- this morning we were working the phones and also you know we've been in touch with S&P and Moody's.
And we've also been in touch with the bond trading desks at the major investment houses and they're saying essentially that -- rates would go up -- in the short term they're saying any where from.
A move up point 30%.
To half a percentage point that's what the upper band -- seems to be in recipe seems to agree with that.
If there is a downgrade but they're -- of a short term.
They're saying essentially if -- the US does not get its fiscal house in order though SS and then you -- -- see rates move up but I got to tell yeah.
Moody's is being increasing criticize and so is -- for.
Basically waiting too long and then reacting very quickly they dropped it for example Moody's -- Portugal for not -- which is a huge huge reaction.
And it's very tough for banks to sell illiquid securities in a locked up market so so that's a problem that's the dangers of for the US right now.
What I'm curious -- is that what maturity would we see the most volatility are the most action.
You know it's according to did this discussion -- to people that you're talking to so if if rates go up all the incrementally -- we see the ten year benchmark.
Or the monitor because there were just -- -- a little bit of fluctuation on the longer term thirty here but nothing to really at this point we're still a week out we've been talking about this for weeks.
From everybody's talking about the long on the thirty year bond -- the ten year note.
And so that's -- seeing -- see saw action right now and not just yet and the ten year note.
And DC action in the ten year note we have the yield spiking higher then you're gonna see all of our -- rates go up and that's where.
That's where it's then it the action is going to be and so the issue is is will the feds stepped -- that's the talk on Wall Street right health is that that is stepping in for example a dollar.
Swaps with Europe to help Europe's crisis -- -- in another time to buy long bonds to.
Keep the long -- low or even ten year notes if the tenure does move.
We could hedging going to put itself but that kind of criticism again it's you we can know what he'll need people -- any kind of appealing as that benefit of QE2 with the stock market about the effectiveness up my yeah I mean it's reflecting assets -- -- -- that's their mandate be you know.
The question is -- the Federal Reserve if Ben Bernanke floated that trial balloon and then and then shot it down.
So the Fed would do undue austerity via the bond market that's a big debate upon our program of Wasilla where we go from -- with popular --
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